1. FY17 earnings jumped 44% to RM23.71m.
The increase in earnings is due to higher revenue (+18% to RM106.27m).
This is backed by higher volume of sales and favorable forex rate.
Details of the good earnings can be seen below.
2. Accurate call so far. On 10-April-2017, I wrote about the good prospect of SUPERLON with TP of RM4.50 (before the one-for-two share split ex). That means my comparable TP is RM2.25 to adjust for the split. With share price at around RM2.00, my call has been accurate so far (as the share price was only RM1.58 when I wrote it on 10-April).
3. Long term value is RM2.56 per share. I think that the Company is worth 15x PE and this is already conservative by looking at its strong earnings growth. In FY17, SUPERLON earnings surge 44%. For FY18, I think it should continue to grow but I am putting a conservative 15% earnings growth to RM27.27m. Comparing my 15x PE against 44% earnings growth in FY17, the 15x PE is very reasonable.
So that gives me FY18 EPS of about 17 sen – it has share base of 160m.
15x PE * 17sen FY18 EPS = RM2.56
https://klse.i3investor.com/blogs/richDad/125864.jsp
2. Accurate call so far. On 10-April-2017, I wrote about the good prospect of SUPERLON with TP of RM4.50 (before the one-for-two share split ex). That means my comparable TP is RM2.25 to adjust for the split. With share price at around RM2.00, my call has been accurate so far (as the share price was only RM1.58 when I wrote it on 10-April).
3. Long term value is RM2.56 per share. I think that the Company is worth 15x PE and this is already conservative by looking at its strong earnings growth. In FY17, SUPERLON earnings surge 44%. For FY18, I think it should continue to grow but I am putting a conservative 15% earnings growth to RM27.27m. Comparing my 15x PE against 44% earnings growth in FY17, the 15x PE is very reasonable.
So that gives me FY18 EPS of about 17 sen – it has share base of 160m.
15x PE * 17sen FY18 EPS = RM2.56
https://klse.i3investor.com/blogs/richDad/125864.jsp
